The highly anticipated hearing in the case between Chinese investor Huang Zhongkai and Union Stone Ltd. is set to take place today at 9:30 a.m. at the Commercial High Court of Kigali. The lawsuit centers on allegations of unpaid dividends, unauthorized use of machinery, and breach of contract, with significant implications for Rwanda’s construction sector and foreign investment climate.
Union Stone Ltd is accused of operating a meticulously organized scheme that defrauded several Chinese investors, Huang Zongkai, union stone Lard denies the allegations and is seeking turning around the case. The investors claim they were misled into transferring millions of RMB to Union Stone Ltd., only to discover their funds were siphoned off for personal use by the company’s leadership headed by Ting Kuoyu seen in the photo.
Huang alleges that the leadership of the company faked a contract with the quarry owners and fabricated invoices for equipment purchases, deceiving investors into financing the venture. Despite winning partial judgments in Rwanda and China, Huang claims Union Stone Ltd continues to use his machinery without authorization and has not complied with court orders to return it or pay damages.
Today’s hearing follows a series of legal disputes involving Union Stone Ltd., with both sides filing appeals with endless court battles. The company has argued that it was not a party to the original agreements and is therefore not liable, citing Rwanda’s contract law. Meanwhile, Huang seeks additional compensation for lost profits, damages, and expenses incurred due to the alleged fraud.
The case has broader implications as it highlights persistent concerns about fraudulent practices by some foreign investments. Huang and other investors are calling on the government to address judicial shortcomings and protect foreign investors from similar schemes.
As the hearing unfolds today, all eyes will be on the court’s decision and its potential impact scheduled next year January 2025.